Bharat Forge Ltd.
NSE: BHARATFORGBharat Forge Ltd.: A 30-second snapshot
Bharat Forge trades at ₹1,945.9, up 75.8% over the past year and near its 52-week high with only a 4.8% drawdown, placing it above both the 50-DMA (₹1,822) and 200-DMA (₹1,468). Trailing PE stands at 86.3x — the highest among the 6 Auto sector peers tracked — against an ROE of 11.6% that has not crossed 15% in any year of the available persistence window. FY26 revenue grew 11.2% YoY while Q4 net profit fell 17.5%, with impairments and restructuring charges cited as drivers.
P/E
86.3
Forward P/E
40.0
ROE
+11.6%
Debt / Equity
76.47
Profit Margin
+6.4%
Div. Yield
+0.4%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
44/100
News
6 headlines · 3 positive · 2 negative
Bharat Forge Signs Long-Term Contract with Embraer for Landing Gear Forgings - Business Wire
Business Wire
BHARATFORG: Double-digit growth in FY 2026, with India business targeting 25%+ growth for FY 2027 - TradingView
TradingView
Bharat Forge Q4 Results: Profit falls 17.5% despite revenue growth; Rs 6.50 dividend declared - Zee Business
Zee Business
BHARATFORG: FY26 revenue up 11.2% YoY; Q4 export rebound and 25% FY27 growth outlook - TradingView
TradingView
BHARATFORG: Profitability impacted by impairments and restructuring, despite revenue growth and dividend proposal - TradingView
TradingView
Recent context
- ·Q4 FY26 results (May 2026): consolidated revenue grew, but net profit fell 17.5% YoY; management attributed the shortfall to impairment charges and restructuring costs and declared a ₹6.50 dividend.
- ·Management guided 25%+ growth for the India business in FY27 and reported FY26 revenue up 11.2% YoY, with Q4 exports described as rebounding after a soft prior quarter.
- ·Bharat Forge signed a long-term contract with Embraer for landing gear forgings (May 2026), marking an aerospace supply entry that diversifies the revenue base beyond domestic auto and commercial vehicle cycles.
Strengths
- +FCF was positive in 4 of the available persistence years, indicating the business has historically generated cash above capex in most periods.
- +Forward PE of 40.0x represents a significant compression from the trailing PE of 86.3x, reflecting analyst consensus that earnings are expected to recover materially in FY27.
- +The stock is 32.5% above its 200-DMA (₹1,468), a level that has served as support through the trailing year, and sits within 0.2% of its nearest resistance level (₹1,950).
- +A new long-term forging contract with Embraer for landing gear components signals diversification into aerospace, a segment structurally distinct from the domestic auto cycle.
Weaknesses
- −5-year earnings CAGR of -17.9% against revenue CAGR of +17.5% indicates a persistent failure of top-line growth to reach the bottom line; Q4 FY26 profit fell 17.5% YoY.
- −Trailing PE of 86.3x is 2.4x the next-highest Auto peer (EICHERMOT at 36.0x) while ROE of 11.6% has never exceeded 15% in the available data window — the valuation multiple is not matched by historical returns on equity.
- −Quality score of 20 out of 100 ranks 6th of 6 among Auto sector peers, with every peer scoring higher; BAJAJ-AUTO at 55 and EICHERMOT at 60 illustrate the gap in composite capital efficiency and profitability.
- −Profit margin of 6.42% alongside D/E of 76.5 (percentage basis, implying ~0.76x) and declining 5-year earnings narrows the debt-service cushion if restructuring charges persist into FY27.
Open questions
- ?Does the 25%+ FY27 India business growth guidance assume a volume recovery in the commercial vehicle cycle, and how sensitive is profitability to delays in that recovery?
- ?The impairments and restructuring charges that compressed Q4 FY26 earnings — are they one-time in nature, or do they signal ongoing write-downs in underperforming geographies or subsidiaries?
- ?At a forward PE of 40x, what level of earnings recovery is already priced in, and how does that compare to the 5-year earnings CAGR of -17.9%?
- ?The Embraer aerospace contract is a diversification step — what share of revenue does the aerospace vertical represent today, and over what horizon could it become material to group margins?
Peer comparison: Auto
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BHARATFORG | Bharat Forge Ltd.You're viewing | 86.3 | +11.6% | 20 |
| Industry avg | across 5 peers | 28.8 | +20.4% | 49 |
| EICHERMOT | Eicher Motors Ltd. | 36.0 | — | 60 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.2 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 20.9 | +18.8% | 52 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | 31.8 | — | 46 |
| MARUTI | Maruti Suzuki India Ltd. | 28.0 | +14.4% | 31 |
Technical state
Current price
₹1,945.90
SMA 50
₹1,821.73
SMA 200
₹1,467.55
RSI (14)
59.2 (neutral)
From 52w high
-4.8%
1Y return
+75.8%
3M return
+22.5%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highTrailing PE of 86.3x ranks last (6th of 6) among Auto sector peers — next highest is EICHERMOT at 36.0x — while ROE of 11.6% has never exceeded 15% in the persistence window (roeYearsAbove15 = 0), indicating the valuation multiple is not supported by returns-on-equity typical of premium-rated industrials.
- high5-year earnings CAGR of -17.9% against 5-year revenue CAGR of +17.5%: sustained top-line growth has not converted to earnings growth. Q4 FY26 net profit fell 17.5% YoY despite revenue expansion, attributed to impairments and restructuring charges.
- mediumQuality score of 20 out of 100 is lowest among the 6 ranked Auto peers; next-lowest peer (MARUTI) scores 31, BAJAJ-AUTO scores 55. Composite metric reflects weak profitability, consistency, and capital efficiency relative to sector.
- lowNews sample totals 6 articles, which is a sparse base for sentiment inference. Sentiment splits 3 positive / 1 neutral / 2 negative, classified as neutral overall.
Cross-section contradictions
- Price is up 75.8% over 1 year and only 4.8% below its 52-week high, trading above both the 50-DMA (₹1,822) and 200-DMA (₹1,468) — while 5-year earnings CAGR is -17.9%, ROE has never crossed 15%, and quality score ranks last among all 6 Auto sector peers. The technical strength reflects forward growth expectations (management guided 25%+ India business growth for FY27) that have not yet been validated in delivered earnings.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days